S&P 500 is forming an ending diagonal. The RSI indicator and the Stochastic show divergence, therefore a decline can be expected. I guess it will still go a short range up just to finish wave 5 of 5 but attribute of the ending diagonal is the steep decline after it is finished.
The question is that this ED is the wave 1 of a longer wave 5, or is it the wave 5 itself that I labeld on the chart. If it begins the decline and breaches the dashed line (red arrow) than it is the latter, if it bounces back (green arrow) it is the former, and further new highs and another 3 waves up can be expected.
The question is that this ED is the wave 1 of a longer wave 5, or is it the wave 5 itself that I labeld on the chart. If it begins the decline and breaches the dashed line (red arrow) than it is the latter, if it bounces back (green arrow) it is the former, and further new highs and another 3 waves up can be expected.
